Leases

9 Months Ended

Sep. 30, 2019

10. Leases

We have operating and finance leases for corporate offices, datacenters, data communication equipment and database software. Our operating leases have remaining lease terms of less than one year to nine years and our finance leases have remaining lease terms of one month to two years. Some of our operating leases may include one or more options to renew and can extend the lease term from one year to ten years. The exercise of operating lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Some of our operating lease agreements include options to terminate the leases upon written notice and may include early termination penalties. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of September 30, 2019, assets recorded under finance leases were $12,280 and accumulated depreciation and amortization associated with finance leases was $4,840.

The components of lease expense were as follows:


	Three Months		Nine Months
	Ended		Ended
	September 30, 2019		September 30, 2019
Operating lease expense	$	907	$	2,683
Finance lease expense:
Depreciation and amortization of assets included in property and equipment, net	$	514	$	1,555
Interest on lease liabilities		—		56
Total finance lease expense	$	514	$	1,611

Interest on lease liabilities capitalized during the three and nine months ended September 30, 2019 amounted to $38 and $85, respectively.

Supplemental cash flow information related to leases was as follows:


	Nine Months
	Ended September 30,
	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(2,723)
Operating cash flows from finance leases		(142)
Financing cash flows from finance leases		(3,288)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		17,321

Operating lease ROU assets obtained in exchange for lease obligations include the effects of the adoption of ASC 842 effective January 1, 2019.

Other information related to leases was as follows:


	September 30, 2019
Weighted average remaining lease term:
Operating leases	6.4	years
Financing leases	1.4	years
Weighted average discount rate:
Operating leases	5.3	%
Finance leases	3.2	%

Future minimum lease payments under non-cancellable leases as of September 30, 2019 as presented in accordance with ASC 842 were as follows:


	Operating		Finance
	Leases		Leases
October 1, 2019 – December 31, 2019	$	1,033	$	943
January 1, 2020―December 31, 2020		3,821		2,784
January 1, 2021―December 31, 2021		3,640		574
January 1, 2022―December 31, 2022		3,597		—
January 1, 2023―December 31, 2023		3,626		—
January 1, 2024―December 31, 2024		3,639		—
Thereafter		5,235		—
Total future minimum lease payments		24,591		4,301
Less: Imputed interest		(3,801)		(95)
Total		20,790		4,206
Current portion of operating and finance leases		2,911		3,057
Long-term portion of operating and finance leases	$	17,879	$	1,149

Future minimum lease payments under non-cancellable leases as of December 31, 2018 as presented in accordance with ASC 840, Leases, were as follows:


	Operating		Capital
	Leases		Leases
January 1, 2019 – December 31, 2019	$	3,573	$	4,373
January 1, 2020―December 31, 2020		3,456		2,783
January 1, 2021―December 31, 2021		3,385		574
January 1, 2022―December 31, 2022		3,414		—
January 1, 2023―December 31, 2023		3,495		—
Thereafter		8,835		—
Minimum lease payments	$	26,158		7,730
Less: Amounts representing interest ranging from 1.3% to 7.7%				(236)
Minimum lease payments				7,494
Current portion of capital leases				4,201
Long-term portion of capital leases			$	3,293